January 9, 2025 : The Goods and Services Tax Network (GSTN) continues to enhance compliance efficiency with the rollout of Phase-III for Table 12 of GSTR-1 and GSTR-1A. Starting from the return period of January 2025, this phase introduces crucial updates designed to standardize reporting and improve accuracy. Here’s everything you need to know about this new phase and its features.
Key Highlights of Phase-III Implementation
- Mandatory HSN Code Selection via Dropdown:
- Taxpayers must now choose the correct HSN codes from a predefined dropdown menu, eliminating manual entry and minimizing reporting errors.
- Bifurcation of Table 12 into Two Tabs:
- B2B Tab: Dedicated to reporting Business-to-Business (B2B) supplies.
- B2C Tab: Focused on reporting Business-to-Consumer (B2C) supplies.
- This segregation streamlines reporting and enhances clarity.
- Introduction of Validations for Supply Values: GSTN has introduced validations to ensure consistency in the values of supplies reported across various tables. These validations operate as follows: For B2B Supplies:
- Validations will cross-check the values reported in the following tables:
- 4A, 4B, 6B, 6C, 8 (recipient registered)
- 9A, 9B (registered), 9C (registered)
- 15 (recipient registered), 15A (recipient registered)
- These values will be validated against the B2B supplies reported in Table-12. For B2C Supplies:
- Values reported in these tables will be cross-validated:
- 5A, 6A, 7A, 7B, 8 (recipient unregistered)
- 9A (export), 9A (B2CL), 9B (unregistered), 9C (unregistered)
- 10, 15 (recipient unregistered), 15A (recipient unregistered)
- The values must align with the B2C supplies reported in Table-12. Handling Amendments:
- For amended entries, only the differential value will be considered for validation. Warning Mode Implementation:
- Initially, these validations will operate in warning mode, issuing alerts in case of mismatches without blocking the filing of GSTR-1 or GSTR-1A.
- Validations will cross-check the values reported in the following tables:
- Mandatory Reporting in B2B Tab:
- If B2B supplies are reported in other tables of GSTR-1, the B2B tab of Table-12 cannot be left empty, ensuring comprehensive data capture.
- New Button: “Download HSN Codes List”
- A new button has been introduced in Table 12 to help taxpayers easily access updated HSN and SAC codes for goods and services.
- Upon clicking this button, taxpayers can download an Excel file containing the updated list of HSN and SAC codes along with their descriptions.
- Searchable “Product Name as in My Master” Field:
- The button for “Product Name as in My Master” is now searchable.
- Taxpayers can search the description they provided in My HSN Master, and upon selection, the HSN code, Description as per HSN Code, UQC, and Quantity will be auto-populated.
- This is an optional functionality, designed to simplify the filing process further.
Learn more about HSN and SAC codes and their importance in GST filings.
Benefits of Phase-III Updates
- Enhanced Accuracy: Dropdown-based HSN code selection and cross-validation ensure standardized and error-free reporting.
- Streamlined Filing: The bifurcation of Table 12 simplifies the categorization and reporting of B2B and B2C supplies.
- Efficient Data Handling: Features like the HSN Codes List download button and the auto-population functionality reduce manual effort and save time.
- Gradual Adaptation: Warning mode for validations provides taxpayers with a buffer to adapt to the new system without penalties.
Need help filing GSTR-1? Check out our GSTR-1 Filing Guide
